We had dinner with a couple the other night, who run a nonprofit. This particular nonprofit runs homes/schools for delinquent youth...not always necessarily delinquent, but with serious issues. They get kids from a bunch of other states.
Apparently the guy's dad had run this facility for decades, and did very well financially, as a regular company. I didn't quite understand WHY it was converted to a nonprofit, but after asking about the whole nonprofit thing, I learned that the money, even as a nonprofit, is definitely good.
Here's how it happens - you ALSO have a business, that leases things to the nonprofit, or provides some other services. Leasing cars and buses, providing laundry services, etc. And of course you pay yourself a great salary.
Apparently, even though it's a "nonprofit" it's quite "profitable". And because it's a nonprofit, you get very favorable tax treatment (or actually I think you pay no taxes at all).
Not throwing shade on this. But I just don't think people know that nonprofits can make a lot of money.
An aside - he said that there are more than 30 federal and state agencies that regulate them, and do inspections regularly. The whole "compliance" thing is a huge burden.